Listing ID: 80733
The company is a very successful and profitable remodeling business located in Boise, Idaho, one of the fastest growing areas in the country. They have an excellent reputation and much of their work is from referrals. The company has very experienced employees and established relationships with an impressive team of subcontractors.
The home remodeling industry is experiencing unprecedented growth and the Company’s business is booming. In fact, they are currently booked up months in advance. And they already have over $800,000 of jobs lined up for nest year! The owners are willing to continue with the business to help a new owner with a transition.
- Asking Price: $700,000
- Cash Flow: $322,700
- Gross Revenue: $2,168,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell operating businesses. However, the true reason vs the one they tell you may be 2 completely different things. As an example, they may state "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be reasons to try to conceal the reality of altering demographics, increased competition, current decrease in incomes, or a variety of other factors. This is why it is very essential that you not depend absolutely on a seller's word, yet rather, make use of the vendor's solution along with your total due diligence. This will repaint an extra sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover points like stock, payroll, accounts payable, etc. Remember that sometimes this can suggest that profit margins are too thin. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be fulfilled or might result in fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location attract brand-new customers? Many times, businesses have repeat consumers, which develop the core of their everyday profits. Particular factors such as new competition growing up around the area, roadway construction, and also staff turnover can influence repeat consumers as well as adversely affect future earnings. One important thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the higher the chance to construct a returning client base. A final thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Just how might the neighborhood median family income effect future earnings prospects?